Stocks Mixed on Friday After US Growth Slowdown

Stocks were mixed on Friday after U.S. economic growth in the first quarter slowed sharply, its worst growth in three years.

The S&P 500 was flat, the Dow Jones Industrial Average fell 0.04%, and the Nasdaq fell 0.2%. The Nasdaq was trading above its record close set a day earlier.  

The U.S. economy grew at a pace of 0.7% over the first three months of the year, according to the first estimate of first-quarter GDP from the Bureau of Economic Analysis. Economists surveyed by FactSet had expected U.S. gross domestic product to rise 1.2%. The U.S. economy grew at a 2.1% pace in the fourth quarter.



The first-quarter slowdown was largely tied to conservative consumer spending. Spending rose just 0.3% from January to March, the smallest increase since 2009.

“That weakness, in our view, is likely to prove transitory,” Barclays analysts wrote in a note. “Warm weather reduced utilities consumption, motor vehicle purchases declined to a more sustainable rate, and early in the quarter, tax refunds were delayed. These factors combined with the timing of the Easter/Passover holiday (in April this year) and a weak March employment report likely weighed on consumption growth.

via The Street

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza